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Balu K v. the State of Karnataka

Karnataka HC3 Apr 2025CRL.P/9567/2018

Case brief

AI extract

What is this about?

Karnataka High Court, Bengaluru (Mohammad Nawaz J.) allows Crl.P No. 9567 of 2018 under S.482 Cr.P.C./S.528 BNSS and quashes charge sheet dated 26.06.2018 and entire proceedings in C.C.No.19449/2018 (VIII Addl. CMM, Bengaluru; Chandra Layout Police) for offences under Ss.448, 506 IPC, Ss.5, 38, 39, 41 Karnataka Money Lenders Act 1961 and Ss.3, 4 Karnataka Prohibition of Charging Exorbitant Interest Act 2004; insufficient material; unsigned deed of guarantee dated 09.06.2015; no mention of 9% interest; vague life-threat allegations; no complaint from public.

What did the court decide?

Entire proceedings against the petitioners in C.C.No.19449/2018 pending on the file of the VIII Additional CMM Court at Bengaluru are quashed. ¶41

Balu K Vs the State of Karnataka — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Entire proceedings against the petitioners in C.C.No.19449/2018 pending on the file of the VIII Additional CMM Court at Bengaluru are quashed.

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Issue for consideration

Whether the charge sheet dated 26.06.2018 and the proceedings in C.C.No.19449/2018 against the petitioners for offences punishable under Sections 448 and 506 IPC, Sections 5, 38, 39 and 41 of the Karnataka Money Lenders Act, 1961 and Sections 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 ought to be quashed.

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Court's answer

There are no sufficient materials against the petitioners to prosecute them for the offences alleged.

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Ratio / Principle

The entire proceedings against the petitioners in C.C.No.19449/2018 pending on the file of the VIII Additional CMM Court at Bengaluru are quashed.

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Detailed headnote1 paragraphs

Criminal petition under Section 482 Cr.P.C. (also numbered 528(BNSS)) seeking quashing of the charge sheet dated 26.06.2018 filed by Chandra Layout Police (respondent No.1) in C.C.No.19449/2018 on the file of the VIII Addl. C.M.M., Bengaluru, for offences punishable under Sections 448 and 506 IPC, Sections 5, 38, 39 and 41 of the Karnataka Money Lenders Act, 1961 and Sections 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004. Origin: complaint dated 20.07.2015 by respondents 2 and 3 to the Deputy Commissioner of Police, Central Crime Branch, Bengaluru, alleging that the petitioners, as money lenders, lent money, charged exorbitant interest and posed threats to life; on forwarding, the Police Inspector, CCB lodged a suo-moto complaint, alleging accused No.1 charged 9% interest and harassed the complainants, and that the accused forced the public to sign blank stamp papers and cheques. Findings recorded: deed of guarantee dated 09.06.2015, wherein the petitioners are shown as second party, bears neither petitioner's signature and makes no mention of 9% interest; documents allegedly seized from the petitioners' house attracted no complaint; allegations of life threat were vague; learned counsel for petitioners submitted no loan was lent and the petitioners claim no money from the complainants. Held: there are no sufficient materials against the petitioners to prosecute them for the offences alleged. Petition allowed; the entire proceedings in C.C.No.19449/2018 pending before the VIII Additional CMM Court, Bengaluru, quashed.

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1 - NC: 2025:KHC:14129 CRL.P No. 9567 of 2018

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 3^RD DAY OF APRIL, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO.9567 OF 2018 (482(Cr.PC)/

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528(BNSS))

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BETWEEN:

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BALU K. S/O KRISHNAPPA, AGED ABOUT 45 YEARS R/O NO.316, 4^TH MAIN, 4^TH CROSS, VIDHYAGIRILAYAOUT, CHANDRALAYOUT, BENGALURU - 560 040.

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Digitally signed by LAKSHMI T Location: High Court of Karnataka

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SMT. SUNITHA W/O K BALU, AGED ABOUT 40 YEARS R/O NO.316, 4^TH MAIN, 4^TH CROSS, VIDHYAGIRILAYAOUT, CHANDRALAYOUT, BENGALURU - 560 040.

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…PETITIONERS

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(BY SRI. MALIPATIL P.S., ADVOCATE)

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AND:

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THE STATE OF KARNATAKA BY CHANDRALAYOUT PS BENGALURU - 560 040 BY STATE PUBLIC PROSECUTOR

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2 - NC: 2025:KHC:14129 CRL.P No. 9567 of 2018

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AARTHI RAJESH W/O RAJESH N R/O NO.204, II FLOOR, PRUTHVI APARTMENT, 13^TH CROSS, CAUVERY LAYOUT, G M PALAYA, NEW THIPPASANDRA, BENGALURU - 560 075.

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RAJESH N. S/O S NANJAPPA, R/O NO.204, II FLOOR, PRUTHVI APARTMENT, 13^TH CROSS, CAUVERY LAYOUT, G M PALAYA, NEW THIPPASANDRA, BENGALURU - 560 075.

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…RESPONDENTS

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(BY SMT. RASHMI PATEL, HCGP FOR R1; SRI. DIVAKARA, ADVOCATE FOR R2)

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THIS CRIMINAL PETITION IS FILED U/S.482 CR.P.C PRAYING TO QUASH THE CHARGE SHEET DATED 26.06.2018 FILED BY THE RESPONDENT NO.1 i.e., CHANDRA LAYOUT POLICE IN C.C.NO.19449/2018 ON THE FILE OF VIII ADDL. C.M.M., BENGALURU FOR THE OFFENCE P/U/S 448 AND 506 OF IPC AND SECTION 5, 38, 39 AND 41 OF KARNATAKA MONEY LENDERS ACT, 1961 AND ALSO U/S 3 AND 4 OF KARNATAKA PROHIBITION OF CHARGING EXORBITANT INTEREST ACT.

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THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE MOHAMMAD NAWAZ

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NC: 2025:KHC:14129 CRL.P No. 9567 of 2018

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ORAL ORDER

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Petitioners are seeking to quash the charge sheet and the proceedings in C.C.No.19449/2018 pending before the VIII Additional CMM Court at Bengaluru, registered for the offence punishable under Section 448, 506 of IPC, Section 5, 38, 39 and 41 of Karnataka Money Lenders Act, 1961 and Section 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004.

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The material on record would disclose that respondent Nos.2 and 3 herein sent a complaint dated 20.07.2015 to the Deputy Commissioner of Police, Central Crime Branch, Bengaluru, alleging harassment and life threat by the petitioners. It is alleged that the petitioners being money lenders have lent some amount to the complainants but they were charging exorbitant interest on the said amount and posing threat to their life etc.

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On receiving the above complaint, forwarded by the office of the Deputy Commissioner of Police, the Police Inspector, CCB F & M, N T pet, Bengaluru City lodged a

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NC: 2025:KHC:14129 CRL.P No. 9567 of 2018

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suo-moto complaint against the petitioners for the aforementioned offences. It is alleged that accused No.1 was charging 9% interest on the loan borrowed by the complainants and harassing them demanding more interest. Further, the accused were demanding higher interest from the public by forcing them to sign on blank stamp papers and cheques etc.

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Copies of the deed of guarantee dated 09.06.2015 entered between petitioner No.1 and the complainants are produced by the learned counsel for petitioners. The said documents does not bear the signatures of either of the petitioners. According to the prosecution, the accused were charging exorbitant interest from the general public and in that connection certain documents were seized from their house. However, there is no complaint lodged by any of them. Vague allegations are made that the accused were posing life threat etc. Deed of guarantee dated 09.06.2015, wherein petitioners

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are shown as the second party, does not bear their signatures. It is further seen that in the said document

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5 - NC: 2025:KHC:14129 CRL.P No. 9567 of 2018

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there is no mention about 9% interest as alleged by the prosecution.

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There are no sufficient materials against the petitioners to prosecute them for the offences alleged. It is submitted by the learned counsel for petitioners that no loan was lent to the complainants as alleged and the entire allegations are false. She contended, petitioners are no not claiming any money from the complainants.

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